eBay 2006 Annual Report Download - page 15

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Our operating results may fluctuate.
Our operating results have varied on a quarterly basis during our operating history. Our operating results may
fluctuate significantly as a result of a variety of factors, many of which are outside our control. Factors that may
affect our operating results include the following:
• our ability to retain an active user base, to attract new users, and to encourage existing users to list items for
sale, purchase items through our websites, or use our payment service or communication software and
products;
• the volume, size, timing, and completion rate of transactions using our websites or technology;
• the amount and timing of operating costs and capital expenditures relating to the maintenance and expansion
of our businesses, operations, and infrastructure;
• our ability to integrate, manage, and profitably expand and further monetize the Skype business;
• our ability to successfully integrate and manage other recent and prospective acquisitions;
• regulatory actions imposing obligations on our businesses or our users;
• the actions of our competitors, including the introduction of new sites, services, and products;
• consumer confidence in the safety and security of transactions using our websites or technology and our
ability to manage the costs of our user protection programs;
• the costs and results of litigation that involves us;
• the cost and availability of online and traditional advertising, and the success of our brand building and
marketing campaigns;
• new laws or regulations, or interpretations of existing laws or regulations, that harm our business models or
restrict the Internet, electronic commerce, online payments, or online communications;
• our ability to comply with the requirements of entities whose services are required for our operations, such as
credit card associations;
• our ability to develop product enhancements at a reasonable cost and to develop programs and features in a
timely manner;
• our ability to upgrade and develop our systems, infrastructure, and customer service capabilities to
accommodate growth and to improve our websites at a reasonable cost while maintaining 24/7 operations;
• technical difficulties or service interruptions involving our websites or services provided to us or our users by
third parties;
• our ability to increase the acceptance of PayPal by online merchants outside of the eBay Marketplaces;
• our ability to expand PayPal’s product offerings outside of the U.S. (including our ability to obtain any
necessary regulatory approvals);
• our ability to manage PayPal’s transaction loss and credit card chargeback rates and payment funding mix;
• our ability to continue Skype’s growth and to find mechanisms to more effectively monetize it;
• our ability to attract new personnel in a timely and effective manner and to retain key employees;
• the continued financial strength of our technology suppliers and other parties with whom we have
commercial relations;
• continued consumer acceptance of the Internet as a medium for commerce and communication in the face of
increasing publicity about fraud, spoofing, viruses, and other dangers of the Internet;
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